The Company has entered into various transactions to limit the exposure against equity price risk on its shares of Comcast Corporation ("Comcast") common stock. The Company has monetized all of its stock holdings in Comcast through the execution of prepaid forward contracts, collateralized by an equivalent amount of the respective underlying stock. At maturity, the contracts provide for the option to deliver cash or shares of Comcast stock with a value determined by reference to the applicable stock price at maturity. These contracts, at maturity, are expected to offset declines in the fair value of these securities below the hedge price per share while allowing the Company to retain upside appreciation from the hedge price per share to the relevant cap price.

The Company received cash proceeds upon execution of the prepaid forward contracts discussed above which has been reflected as collateralized indebtedness in the accompanying consolidated balance sheets. In addition, the Company separately accounts for the equity derivative component of the prepaid forward contracts. These equity derivatives have not been designated as hedges for accounting purposes. Therefore, the net fair values of the equity derivatives have been reflected in the accompanying consolidated balance sheets as an asset or liability and the net increases or decreases in the fair value of the equity derivative component of the prepaid forward contracts are included in gain (loss) on derivative contracts in the accompanying consolidated statements of operations.

All of the Company's monetization transactions are obligations of its wholly-owned subsidiaries that are not part of the Restricted Group; however, CSC Holdings has provided guarantees of the subsidiaries' ongoing contract payment expense obligations and potential payments that could be due as a result of an early termination event (as defined in the agreements). If any one of these contracts was terminated prior to its scheduled maturity date, the Company would be obligated to repay the fair value of the collateralized indebtedness less the sum of the fair values of the underlying stock and equity collar, calculated at the termination date. As of June 30, 2022, the Company did not have an early termination shortfall relating to any of these contracts.

The Company monitors the financial institutions that are counterparties to its equity derivative contracts. All of the counterparties to such transactions carry investment grade credit ratings as of June 30, 2022.

In January 2021, the Company settled collateralized indebtedness and an equity derivative contract aggregating $185,105 upon maturity related to 5,337,750 shares of Comcast common stock held by us, with proceeds of $185,105 received in January 2021 pursuant to the synthetic monetization closeout transaction in November 2019. In connection with this transaction the Company recorded (i) a decrease in notes payable of $59,451 and (ii) an increase in collateralized debt of $59,451.

To manage interest rate risk, we have from time to time entered into interest rate swap contracts to adjust the proportion of total debt that is subject to variable and fixed interest rates. Such contracts effectively fix the borrowing rates on floating rate debt to provide an economic hedge against the risk of rising rates and/or effectively convert fixed rate borrowings to variable rates to permit the Company to realize lower interest expense in a declining interest

rate environment. We monitor the financial institutions that are counterparties to our interest rate swap contracts and we only enter into interest rate swap contracts with financial institutions that are rated investment grade. All such contracts are carried at their fair market values on our consolidated balance sheets, with changes in fair value reflected in the consolidated statements of operations. As of June 30, 2022, the Company did not hold and has not issued derivative instruments for trading or speculative purposes.

The following represents the location of the assets and liabilities associated with the Company's derivative instruments within the consolidated balance sheets:


Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value at
		June 30, 2022		December 31, 2021

Asset Derivatives:
Interest rate swap contracts	Prepaid expenses and other current assets	$	—	$	2,993
Prepaid forward contracts	Prepaid expenses and other current assets	158,246		—
Interest rate swap contracts	Other asset, long-term	76,905		—

		235,151		2,993
Liability Derivatives:

Interest rate swap contracts	Other current liabilities	—		(3,441)
Prepaid forward contracts	Liabilities under derivative contracts, long-term	—		(161,942)
Interest rate swap contracts	Liabilities under derivative contracts, long-term	—		(114,991)
		$	—	$	(280,374)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Gain (loss) on derivative contracts related to change in the value of equity derivative contracts related to Comcast common stock	$	219,114	$	(98,840)	$	320,188	$	(152,405)
Change in the fair value of Comcast common stock included in gain (loss) on investments	(325,601)		125,000		(476,374)		198,453
Gain (loss) on interest rate swap contracts	39,868		(21,574)		163,015		54,079

Maturity Date

Notional Amount

Company Pays

Company Receives

CSC Holdings:

January 2025

500,000

Fixed rate of 1.53%

Three-month LIBOR

January 2025

500,000

Fixed rate of 1.625%

Three-month LIBOR

January 2025

500,000

Fixed rate of 1.458%

Three-month LIBOR

December 2026

750,000

Fixed rate of 2.9155%

Three-month LIBOR

December 2026

750,000

Fixed rate of 2.9025%

Three-month LIBOR

Lightpath:

December 2026 (a)

300,000

Fixed rate of 2.161%

One-month LIBOR

(a)Interest rate swap contract was effective April 2022. This swap contract is also not designated as a hedge for accounting purposes. Accordingly, this contract is carried at its fair market value on our consolidated balance sheet, with changes in fair value reflected in the consolidated statements of operations.